093_HB0700sam001











                                     LRB093 05497 DRJ 17296 a

 1                     AMENDMENT TO HOUSE BILL 700

 2        AMENDMENT NO.     .  Amend House Bill  700  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The  Illinois Public Aid Code is amended by
 5    changing Sections 5A-1, 5A-2, 5A-3, 5A-4, 5A-5,  5A-7,  5A-8,
 6    and 5A-10 and adding Sections 5A-12 and 5A-13 as follows:

 7        (305 ILCS 5/5A-1) (from Ch. 23, par. 5A-1)
 8        Sec.  5A-1.  Definitions. As used in this Article, unless
 9    the context requires otherwise:
10        "Fund" means the Hospital Provider Fund.
11        "Hospital" means  an  institution,  place,  building,  or
12    agency  located in this State that is subject to licensure by
13    the Illinois Department of Public Health under  the  Hospital
14    Licensing   Act,   whether  public  or  private  and  whether
15    organized for profit or not-for-profit.
16        "Hospital  provider"  means  a  person  licensed  by  the
17    Department of Public Health to conduct, operate, or  maintain
18    a  hospital,  regardless  of whether the person is a Medicaid
19    provider.  For purposes of this paragraph, "person" means any
20    political subdivision of the  State,  municipal  corporation,
21    individual,  firm, partnership, corporation, company, limited
22    liability company, association, joint stock  association,  or
 
                            -2-      LRB093 05497 DRJ 17296 a
 1    trust,  or  a receiver, executor, trustee, guardian, or other
 2    representative appointed by order of any court.
 3        "Adjusted gross  hospital  inpatient  revenue"  shall  be
 4    determined  separately for each hospital conducted, operated,
 5    or maintained by a hospital provider, and  means the hospital
 6    provider's  total  gross  inpatient  patient  revenues   less
 7    Medicare  contractual  allowances, but does not include gross
 8    inpatient patient revenue (and the portion  of  any  Medicare
 9    contractual   allowance  related  thereto)  from  skilled  or
10    intermediate long-term care services within  the  meaning  of
11    Title XVIII or XIX of the Social Security Act.
12        "Adjusted  gross  hospital  outpatient  revenue" shall be
13    determined separately for each hospital conducted,  operated,
14    or maintained by a hospital provider, and  means the hospital
15    provider's  total  gross  hospital  outpatient  revenues less
16    contractual allowances.
17        "Intergovernmental transfer payment" means  the  payments
18    established  under  Section  15-3  of this Code, and includes
19    without limitation payments payable under  that  Section  for
20    July, August, and September of 1992.
21    (Source: P.A. 87-861; 88-88.)

22        (305 ILCS 5/5A-2) (from Ch. 23, par. 5A-2)
23        Sec. 5A-2.  Assessment; no local authorization to tax.
24        (a)  Subject  to subsection (a) of Section 5A-10, for the
25    privilege of engaging in the occupation of hospital provider,
26    an assessment is imposed upon each hospital provider for  the
27    State  fiscal  year beginning on July 1, 2003 1993 and ending
28    on June 30, 1994, in an amount equal to the sum of (i)  1.88%
29    of  the  provider's adjusted gross hospital inpatient revenue
30    multiplied by a factor to be determined by the Department but
31    not to exceed 2.50% plus (ii) the provider's  adjusted  gross
32    hospital  outpatient  revenue  multiplied  by  a factor to be
33    determined by the Department but not to  exceed  5.50%,  each
 
                            -3-      LRB093 05497 DRJ 17296 a
 1    for  the  most  recent  calendar  year 2000 ending before the
 2    beginning of that State fiscal year.  In no event  shall  the
 3    revenue  generated by this assessment exceed $565,000,000 for
 4    the State fiscal year 2004.
 5        Effective July 1, 1994 through June 30, 1996,  an  annual
 6    assessment  is  imposed  upon  each  hospital  provider in an
 7    amount  equal  to  the  provider's  adjusted  gross  hospital
 8    revenue for the most recent calendar year ending  before  the
 9    beginning  of  that  State  fiscal  year  multiplied  by  the
10    Provider's Savings Rate.
11        Effective  July  1,  1996  through  March  31,  1997,  an
12    assessment  is  imposed  upon  each  hospital  provider in an
13    amount equal to  three-fourths  of  the  provider's  adjusted
14    gross  hospital  revenue for calendar year 1995 multiplied by
15    the Provider's Savings Rate.  No assessment shall be  imposed
16    on or after April 1, 1997.
17        Before July 1, 1995, the Provider's Savings Rate is 1.88%
18    multiplied  by  a  fraction,  the  numerator  of which is the
19    Maximum Section 5A-2 Contribution  minus  the  Cigarette  Tax
20    Contribution,  and  the  denominator  of which is the Maximum
21    Section 5A-2  Contribution.   Effective  July  1,  1995,  the
22    Provider's  Savings  Rate  is 1.25% multiplied by a fraction,
23    the  numerator  of  which  is  the   Maximum   Section   5A-2
24    Contribution  minus  the  Cigarette Tax Contribution, and the
25    denominator  of   which   is   the   Maximum   Section   5A-2
26    Contribution.
27        The  Cigarette  Tax  Contribution is the sum of the total
28    amount  deposited  in  the  Hospital  Provider  Fund  in  the
29    previous State fiscal year pursuant to Section  2(a)  of  the
30    Cigarette  Tax  Act,  plus  the total amount deposited in the
31    Hospital Provider Fund in  the  previous  State  fiscal  year
32    pursuant to Section 5A-3(c) of this Code.
33        The Maximum Section 5A-2 Contribution is the total amount
34    of  tax  imposed by this Section in the previous State fiscal
 
                            -4-      LRB093 05497 DRJ 17296 a
 1    year on providers  subject  to  this  Act,  multiplied  by  a
 2    fraction  the  numerator  of which is adjusted gross hospital
 3    revenues reported to the Department by providers  subject  to
 4    this   Act  for  the  previous  State  fiscal  year  and  the
 5    denominator of which  is  adjusted  gross  hospital  revenues
 6    reported  to  the Department by providers subject to this Act
 7    for the State fiscal year immediately preceding the  previous
 8    State fiscal year.
 9        The  Department  shall  notify  hospital providers of the
10    Provider's  Savings  Rate  by  mailing  a  notice   to   each
11    provider's  last known address as reflected by the records of
12    the Illinois Department.
13        (b)  Nothing in this  amendatory  Act  of  1995  or  this
14    amendatory   Act  of  the  93rd  General  Assembly  shall  be
15    construed to authorize any home rule unit or  other  unit  of
16    local government to license for revenue or to impose a tax or
17    assessment  upon  hospital  providers  or  the  occupation of
18    hospital provider, or a tax or  assessment  measured  by  the
19    income or earnings of a hospital provider.
20    (Source:   P.A.  88-88;  89-21,  eff.  7-1-95;  89-499,  eff.
21    6-28-96.)

22        (305 ILCS 5/5A-3) (from Ch. 23, par. 5A-3)
23        Sec. 5A-3.  Exemptions; intergovernmental transfers.
24        (a)  A  hospital  provider  which  is  a  county  with  a
25    population    of    more    than    3,000,000    that   makes
26    intergovernmental transfer payments as  provided  in  Section
27    15-3 of this Code shall be exempt from the assessment imposed
28    by  Section  5A-2,  unless  the  exemption  is adjudged to be
29    unconstitutional or otherwise  invalid,  in  which  case  the
30    county  shall  pay the assessment imposed by Section 5A-2 for
31    all assessment periods beginning on or after  July  1,  1992,
32    and  the  assessment  so paid shall be creditable against the
33    intergovernmental transfer payments.
 
                            -5-      LRB093 05497 DRJ 17296 a
 1        (b)  A  hospital  organized  under  the   University   of
 2    Illinois  Hospital Act and exempt from the assessment imposed
 3    by Section  5A-2  is  hereby  authorized  to  enter  into  an
 4    interagency  agreement  with  the Illinois Department to make
 5    intergovernmental   transfer   payments   to   the   Illinois
 6    Department.  These  payments  shall  be  deposited  into  the
 7    University  of  Illinois  Hospital  Services Fund or, if that
 8    Fund ceases to exist, into the General Revenue Fund.
 9        (b-2)  A  hospital  provider  that  is  not  included  in
10    subsection (a)  or  subsection  (b)  and  that  is  owned  or
11    operated   by  a  county,  township,  municipality,  hospital
12    district, or any other local governmental unit is exempt from
13    the assessment imposed by Section 5A-2.
14        (b-5)  A hospital operated by  the  Department  of  Human
15    Services  in  the  course of performing its mental health and
16    developmental  disabilities  functions  is  exempt  from  the
17    assessment imposed by Section 5A-2.
18        (b-10)  A  hospital  provider  whose  hospital  does  not
19    charge for its services is exempt from the assessment imposed
20    by Section 5A-2.
21        (b-15)  A hospital provider whose hospital is licensed by
22    the Department of Public Health as a psychiatric hospital  is
23    exempt from the assessment imposed by Section 5A-2.
24        (c)  The  Illinois  Department  is  hereby  authorized to
25    enter  into  agreements  with  publicly  owned  or   operated
26    hospitals  to make intergovernmental transfer payments to the
27    Illinois Department.  These payments shall be deposited  into
28    the  Hospital Provider Fund, except that any payments arising
29    under an  agreement  with  a  hospital  organized  under  the
30    University  of  Illinois Hospital Act shall be deposited into
31    the University of Illinois Hospital Services  Fund,  if  that
32    Fund exists.
33    (Source:  P.A.  88-88;  88-554,  eff.  7-26-94;  89-21,  eff.
34    7-1-95; 89-507, eff. 7-1-97.)
 
                            -6-      LRB093 05497 DRJ 17296 a
 1        (305 ILCS 5/5A-4) (from Ch. 23, par. 5A-4)
 2        Sec. 5A-4.   Payment of assessment; penalty.
 3        (a)  The  assessment  imposed by Section 5A-2 for a State
 4    fiscal  year  shall  be  due   and   payable   in   quarterly
 5    installments, each equalling one-fourth of the assessment for
 6    the  year,  on August 31, November 30, February 28, September
 7    30, December 31, March 31, and May 31  of  the  year;  except
 8    that  for the period July 1, 1996 through March 31, 1997, the
 9    assessment imposed by Section 5A-2 for that period  shall  be
10    due  and  payable  in  3  equal installments on September 30,
11    December 31, and March 31 of that period.
12        (b)  The Illinois Department is authorized  to  establish
13    delayed  payment  schedules  for  hospital providers that are
14    unable to make  installment  payments  when  due  under  this
15    Section  due  to financial difficulties, as determined by the
16    Illinois Department.
17        (c)  If a hospital provider fails to pay the full  amount
18    of  an installment when due (including any extensions granted
19    under subsection (b)), there  shall,  unless  waived  by  the
20    Illinois  Department  for  reasonable  cause, be added to the
21    assessment imposed by Section 5A-2 a penalty assessment equal
22    to the lesser of (i) 5% of the amount of the installment  not
23    paid on or before the due date plus 5% of the portion thereof
24    remaining  unpaid on the last day of each month thereafter or
25    (ii) 100% of the installment amount not paid on or before the
26    due date.  For purposes of this subsection, payments will  be
27    credited  first to unpaid installment amounts (rather than to
28    penalty or interest),  beginning  with  the  most  delinquent
29    installments.
30    (Source: P.A. 88-88; 89-499, eff. 6-28-96.)

31        (305 ILCS 5/5A-5) (from Ch. 23, par. 5A-5)
32        Sec. 5A-5.  Reporting; penalty; maintenance of records.
33        (a)  After  December  31  of  each year, and on or before
 
                            -7-      LRB093 05497 DRJ 17296 a
 1    March 31 of the  succeeding  year,  every  hospital  provider
 2    subject  to assessment under this Article shall file a return
 3    with the Illinois Department.  The return  shall  report  the
 4    adjusted  gross  hospital  inpatient  and outpatient revenues
 5    revenue from the calendar  year  just  ended.  and  shall  be
 6    utilized   by   the  Illinois  Department  to  calculate  the
 7    assessment for the State fiscal year commencing on  the  next
 8    July  1,  except  that  The  return for the State fiscal year
 9    commencing July 1, 2003, consisting  of  calendar  year  2000
10    financial  information,  1992  and  the report of revenue for
11    calendar year 1991 shall be filed on or before July 31,  2003
12    September  30,  1992.  The return shall be on a form prepared
13    by the Illinois Department,  and  all  financial  information
14    shall  be  audited  and  certified by an independent auditor.
15    The return shall state the following:
16             (1)  The name of the hospital provider.
17             (2)  The  address   of   the   hospital   provider's
18        principal  place  of  business  from  which  the provider
19        engages in the occupation of hospital  provider  in  this
20        State,   and  the  name  and  address  of  each  hospital
21        operated, conducted, or maintained  by  the  provider  in
22        this State.
23             (3)  The   contractual  allowances,  the  gross  and
24        adjusted gross hospital inpatient and outpatient revenues
25        revenue of the hospital provider for  the  calendar  year
26        just  ended,  the  amount  of  assessment  imposed  under
27        Section  5A-2  for  the  State  fiscal year for which the
28        return  is  filed,  and  the  amount  of  each  quarterly
29        installment to be paid during the State fiscal year.
30             (4)  The amount of penalty due, if any.
31             (5)  Other  reasonable  information   the   Illinois
32        Department requires.
33        (b)  If   a  hospital  provider  conducts,  operates,  or
34    maintains more than one hospital  licensed  by  the  Illinois
 
                            -8-      LRB093 05497 DRJ 17296 a
 1    Department  of  Public  Health,  the  provider may not file a
 2    single return covering all those hospitals, but shall file  a
 3    separate  return  for each hospital and shall compute and pay
 4    the assessment for each hospital separately.
 5        (c)  Notwithstanding any other provision in this Article,
 6    in the case of a person who ceases to  conduct,  operate,  or
 7    maintain a hospital in respect of which the person is subject
 8    to  assessment under this Article as a hospital provider, the
 9    assessment for the State fiscal year in which  the  cessation
10    occurs  shall  be  adjusted  by  multiplying  the  assessment
11    computed  under  Section 5A-2 by a fraction, the numerator of
12    which is the number of days months in the year  during  which
13    the  provider  conducts,  operates, or maintains the hospital
14    and the denominator of which is 366  12.   The  person  shall
15    file a final, amended return with the Illinois Department not
16    more   than  90  days  after  the  cessation  reflecting  the
17    adjustment and shall pay with the final return the assessment
18    for the year as so adjusted (to  the  extent  not  previously
19    paid).
20        (d)  Notwithstanding any other provision in this Article,
21    a   provider   who   commences   conducting,   operating,  or
22    maintaining a hospital shall file an initial return  for  the
23    State  fiscal year in which the commencement occurs within 90
24    days thereafter and shall pay the assessment  computed  under
25    Section  5A-2 and subsection (e) in equal installments on the
26    due date of the return and on  the  regular  installment  due
27    dates  for the State fiscal year occurring after the due date
28    of the initial return.
29        (e)  Notwithstanding any other provision in this Article,
30    in the case of a hospital  provider  that  did  not  conduct,
31    operate,  or maintain a hospital throughout the calendar year
32    preceding a State fiscal year, the assessment for that  State
33    fiscal  year  shall  be computed on the basis of hypothetical
34    adjusted gross hospital  inpatient  and  outpatient  revenues
 
                            -9-      LRB093 05497 DRJ 17296 a
 1    revenue  for  the  full  calendar year as determined by rules
 2    adopted by the Illinois Department (which  may  be  based  on
 3    annualization of the provider's actual revenues for a portion
 4    of  the  calendar  year, or revenues of a comparable hospital
 5    for the year, including revenues realized by a prior provider
 6    from the same hospital during the year).
 7        (f)  In the case of a hospital  provider  existing  as  a
 8    corporation  or  legal  entity  other than an individual, the
 9    return  filed  by  it  shall  be  signed  by  its  president,
10    vice-president, secretary, or treasurer or  by  its  properly
11    authorized agent.
12        (g)  If  a hospital provider fails to file its return for
13    a State fiscal year on or before the due date of the  return,
14    there  shall,  unless  waived  by the Illinois Department for
15    reasonable cause, be  added  to  the  assessment  imposed  by
16    Section  5A-2  for the State fiscal year a penalty assessment
17    equal to 25% of the assessment imposed for the year.
18        (h)  Every hospital provider subject to assessment  under
19    this  Article  shall  keep  sufficient  records to permit the
20    determination of contractual allowances  and  adjusted  gross
21    hospital  inpatient  and  outpatient  revenues  revenue  on a
22    calendar year basis.  All such records shall be kept  in  the
23    English  language  and  shall,  at  all times during business
24    hours of the day, be subject to inspection  by  the  Illinois
25    Department or its duly authorized agents and employees.
26    (Source: P.A. 87-861.)

27        (305 ILCS 5/5A-7) (from Ch. 23, par. 5A-7)
28        Sec. 5A-7. Administration; enforcement provisions.
29        (a)  To  the  extent practicable, the Illinois Department
30    shall administer and enforce this  Article  and  collect  the
31    assessments,  interest, and penalty assessments imposed under
32    this Article using procedures employed in its  administration
33    of  this  Code  generally  and, as it deems appropriate, in a
 
                            -10-     LRB093 05497 DRJ 17296 a
 1    manner similar to that in which  the  Department  of  Revenue
 2    administers  and collects the retailers' occupation tax under
 3    the Retailers' Occupation  Tax  Act  ("ROTA").    Instead  of
 4    certificates  of  registration, the Illinois Department shall
 5    establish and maintain a listing of  all  hospital  providers
 6    appearing  in  the  licensing  records  of  the Department of
 7    Public  Health,  which  shall  show  each  provider's   name,
 8    principal place of business, and the name and address of each
 9    hospital  operated,  conducted, or maintained by the provider
10    in  this  State.   In  addition,  the   following   specified
11    provisions   of   the   Retailers'  Occupation  Tax  Act  are
12    incorporated by reference into this Section except  that  the
13    Illinois   Department  and  its  Director  (rather  than  the
14    Department of Revenue and its Director)  and  every  hospital
15    provider  subject  to  assessment  measured by adjusted gross
16    hospital inpatient and outpatient revenues revenue and to the
17    return filing  requirements  of  this  Article  (rather  than
18    persons  subject  to  retailers'  occupation  tax measured by
19    gross receipts from the sale of tangible personal property at
20    retail and to the return filing requirements of  ROTA)  shall
21    have  the  powers, duties, and rights specified in these ROTA
22    provisions, as modified in this Section or  by  the  Illinois
23    Department  in  a  manner  consistent  with  this Article and
24    except as manifestly inconsistent with the  other  provisions
25    of this Article:
26             (1)  ROTA,  Section 4 (examination of return; notice
27        of  correction;  evidence;   limitations;   protest   and
28        hearing),  except  that (i) the Illinois Department shall
29        issue  notices  of  assessment  liability  (rather   than
30        notices of tax liability as provided in ROTA, Section 4);
31        (ii) in the case of a fraudulent return or in the case of
32        an  extended  period agreed to by the Illinois Department
33        and the hospital provider before the  expiration  of  the
34        limitation  period,  no  notice  of  assessment liability
 
                            -11-     LRB093 05497 DRJ 17296 a
 1        shall be issued more than 3 years after the later of  the
 2        due  date  of  the return required by Section 5A-5 or the
 3        date the return (or an amended return) was filed  (rather
 4        within  the  period stated in ROTA, Section 4); and (iii)
 5        the penalty provisions  of  ROTA,  Section  4  shall  not
 6        apply.
 7             (2)  ROTA,  Sec.  5 (failure to make return; failure
 8        to pay assessment), except that the penalty and  interest
 9        provisions of ROTA, Section 5 shall not apply.
10             (3)  ROTA,    Section    5a    (lien;    attachment;
11        termination;  notice;  protest;  review; release of lien;
12        status of lien).
13             (4)  ROTA, Section 5b  (State  lien  notices;  State
14        lien index; duties of recorder and registrar of titles).
15             (5)  ROTA,   Section   5c   (liens;  certificate  of
16        release).
17             (6)  ROTA, Section 5d (Department  not  required  to
18        furnish bond; claim to property attached or levied upon).
19             (7)  ROTA,   Section   5e   (foreclosure  on  liens;
20        enforcement).
21             (8)  ROTA, Section 5f (demand for payment; levy  and
22        sale of property; limitation).
23             (9)  ROTA,    Section    5g   (sale   of   property;
24        redemption).
25             (10)  ROTA, Section 5j (sales on  transfers  outside
26        usual  course of business; report; payment of assessment;
27        rights and duties of purchaser; penalty).
28             (11)  ROTA, Section 6 (erroneous payments; credit or
29        refund), provided that (i) the  Illinois  Department  may
30        only  apply  an  amount  otherwise  subject  to credit or
31        refund to a liability arising under  this  Article;  (ii)
32        except in the case of an extended period agreed to by the
33        Illinois  Department and the hospital provider before the
34        expiration of this limitation period, a claim for  credit
 
                            -12-     LRB093 05497 DRJ 17296 a
 1        or  refund  must  be filed no more than 3 years after the
 2        due date of the return required by Section  5A-5  (rather
 3        than  the time limitation stated in ROTA, Section 6); and
 4        (iii) credits or refunds shall not bear interest.
 5             (12)  ROTA,  Section  6a  (claims  for   credit   or
 6        refund).
 7             (13)  ROTA,  Section  6b (tentative determination of
 8        claim; notice; hearing; review), provided that a hospital
 9        provider or its representative shall have 60 days (rather
10        than 20 days)  within which to file a protest and request
11        for hearing in response to a tentative  determination  of
12        claim.
13             (14)  ROTA,   Section   6c  (finality  of  tentative
14        determinations).
15             (15)  ROTA,   Section   8     (investigations    and
16        hearings).
17             (16)  ROTA, Section 9 (witness; immunity).
18             (17)  ROTA,   Section  10  (issuance  of  subpoenas;
19        attendance  of  witnesses;  production   of   books   and
20        records).
21             (18)  ROTA,  Section  11  (information confidential;
22        exceptions).
23             (19)  ROTA,  Section  12  (rules  and   regulations;
24        hearing;  appeals), except that a hospital provider shall
25        not be required to file a bond or be subject to a lien in
26        lieu thereof in order to  seek  court  review  under  the
27        Administrative  Review  Law  of  a  final  assessment  or
28        revised final assessment or the equivalent thereof issued
29        by the Illinois Department under this Article.
30        (b)  In  addition  to  any  other remedy provided for and
31    without  sending  a  notice  of  assessment  liability,   the
32    Illinois  Department  may  collect  an  unpaid  assessment by
33    withholding, as payment of the assessment, reimbursements  or
34    other amounts otherwise payable by the Illinois Department to
 
                            -13-     LRB093 05497 DRJ 17296 a
 1    the provider.
 2    (Source: P.A. 87-861.)

 3        (305 ILCS 5/5A-8) (from Ch. 23, par. 5A-8)
 4        Sec. 5A-8.  Hospital Provider Fund.
 5        (a)  There  is created in the State Treasury the Hospital
 6    Provider Fund. Interest earned by the Fund shall be  credited
 7    to the Fund. The fund shall not be used to replace any moneys
 8    appropriated to the Medicaid program by the General Assembly.
 9    The   Fund   shall  be  used  to  increase  moneys  otherwise
10    appropriated for medical assistance under this Code  and  the
11    Children's  Health  Insurance  Program  Act.  The  assessment
12    imposed  by  Section  5A-2 shall cease to be imposed, and any
13    remaining assessments shall be refunded to hospital providers
14    in proportion to the amounts paid by them, if:
15             (1)  the general  funds  appropriation  for  medical
16        assistance  in  any  future  fiscal year is less than the
17        level enacted for fiscal year 2004; or
18             (2)  the Department of Public Aid changes  rules  or
19        makes  amendments  to  the  State  Plan that in aggregate
20        reduce  hospital  rates  paid  to  non-government   owned
21        hospitals below the fiscal year 2003 level.
22        (b)  The  Fund  is  created  for the purpose of receiving
23    moneys in accordance with Section 5A-6 and disbursing  moneys
24    for the following purposes as follows:
25             (1)  To  hospital  providers under Article V of this
26        Code and under the Children's  Health  Insurance  Program
27        Act in a total statewide aggregate amount of $856,000,000
28        per  fiscal year, or a lesser amount per fiscal year that
29        is certified by the Director of Public Aid as the maximum
30        allowable total statewide aggregate payment to  hospitals
31        supported  by  the  Hospital  Provider  Fund revenues and
32        resulting federal financial participation for that fiscal
33        year. The certification required under this paragraph (1)
 
                            -14-     LRB093 05497 DRJ 17296 a
 1        shall  be  filed  with  the  Speaker  of  the  House   of
 2        Representatives,   the   President  of  the  Senate,  the
 3        Minority Leader of the House of Representatives, and  the
 4        Minority  Leader  of  the Senate by July 15 following the
 5        end of the applicable fiscal year. For hospital inpatient
 6        care,  hospital  ambulatory  care,  and  disproportionate
 7        share hospital distributive expenditures made under Title
 8        XIX of the Social Security Act  and  Article  V  of  this
 9        Code.
10             (2)  For  the  reimbursement  of moneys collected by
11        the Illinois Department from hospitals through  error  or
12        mistake  in  performing  the  activities authorized under
13        this Article and Article V of this Code  and  for  making
14        required  payments  under  Section  14-9  of this Code if
15        there are no moneys available for those payments  in  the
16        Hospital Services Trust Fund.
17             (3)  For payment of administrative expenses incurred
18        by the Illinois Department or its agent in performing the
19        activities authorized by this Article.
20             (4)  For   payments   of   any   amounts  which  are
21        reimbursable to the federal government for payments  from
22        this Fund which are required to be paid by State warrant.
23             (5)  For  making transfers to the General Obligation
24        Bond Retirement and Interest Fund, as those transfers are
25        authorized in the proceedings authorizing debt under  the
26        Short  Term  Borrowing Act, but transfers made under this
27        paragraph (5)  shall not exceed the principal  amount  of
28        debt  issued  in anticipation of the receipt by the State
29        of moneys to be deposited into the Fund.
30             (6)  Only if the Department of Public Aid determines
31        that additional moneys are or will be available after the
32        disbursements described in paragraphs  (1)  through  (5),
33        then  for  any other purpose under Article V of this Code
34        and under the Children's Health Insurance Program Act.
 
                            -15-     LRB093 05497 DRJ 17296 a
 1        Disbursements  from  the  Fund,  other   than   transfers
 2    authorized  under  paragraph  (5)  of  subsection  (b) to the
 3    General Obligation Bond Retirement and Interest  Fund,  shall
 4    be by warrants drawn by the State Comptroller upon receipt of
 5    vouchers   duly   executed  and  certified  by  the  Illinois
 6    Department.
 7        This subsection (b)  is  subject  to  subsection  (a)  of
 8    Section 5A-10.
 9        (c)  The Fund shall consist of the following:
10             (1)  All   moneys   collected  or  received  by  the
11        Illinois Department from the hospital provider assessment
12        imposed by this Article.
13             (2)  All federal  matching  funds  received  by  the
14        Illinois  Department  as a result of expenditures made by
15        the Illinois Department that are attributable  to  moneys
16        deposited in the Fund.
17             (3)  Any  interest  or penalty levied in conjunction
18        with the administration of this Article.
19             (4)  (Blank).  Any balance in the Hospital  Services
20        Trust  Fund  in the State Treasury.  The balance shall be
21        transferred  to  the  Fund  upon  certification  by   the
22        Illinois  Department to the State Comptroller that all of
23        the disbursements required by  Section  14-2(b)  of  this
24        Code have been made.
25             (5)  All other moneys received for the Fund from any
26        other source, including interest earned thereon.
27        (d)  (Blank).   The  Fund shall cease to exist on October
28    1, 1999.  Any balance in the Fund as of that  date  shall  be
29    transferred  to  the  General  Revenue Fund.  Any moneys that
30    otherwise would be paid into the Fund on or after  that  date
31    shall  be  deposited  into  the  General  Revenue  Fund.  Any
32    disbursements on or after that date that otherwise  would  be
33    made  from  the  Fund  may  be  appropriated  by  the General
34    Assembly from the General Revenue Fund.
 
                            -16-     LRB093 05497 DRJ 17296 a
 1    (Source: P.A. 89-626, eff. 8-9-96; 90-587, eff. 7-1-98.)

 2        (305 ILCS 5/5A-10) (from Ch. 23, par. 5A-10)
 3        Sec. 5A-10. Applicability.
 4        (a)  The assessment authorized by Section 5A-2 shall  not
 5    be effective until the later of June 30, 2003 or the adoption
 6    of rules consistent with federal guidelines to implement this
 7    Article V-A.
 8        (b)  Until  June 30, 2003, the Department shall study the
 9    effectiveness of the assessment program and shall  meet  with
10    all interested stakeholders in the assessment program.
11        (c)  The  assessment  imposed by Section 5A-2 shall cease
12    to be imposed if the amount of matching federal  funds  under
13    Title  XIX  of  the  Social  Security  Act  is  eliminated or
14    significantly  reduced  on   account   of   the   assessment.
15    Assessments  imposed  prior  thereto  shall  be  disbursed in
16    accordance with Section 5A-8 to the extent  federal  matching
17    is   not  reduced  by  the  assessments,  and  any  remaining
18    assessments  shall  be  refunded  to  hospital  providers  in
19    proportion to the amounts paid by them.
20    (Source: P.A. 87-861.)

21        (305 ILCS 5/5A-12 new)
22        Sec.  5A-12.  Emergency  rulemaking.  The  Department  of
23    Public Aid may adopt rules necessary to implement the changes
24    made by this amendatory Act  of  the  93rd  General  Assembly
25    through  the  use  of emergency rulemaking in accordance with
26    Section 5-45 of the Illinois  Administrative  Procedure  Act.
27    For purposes of that Act, the General Assembly finds that the
28    adoption  of  rules  to  implement  the  changes made by this
29    amendatory Act of the 93rd  General  Assembly  is  deemed  an
30    emergency  and necessary for the public interest, safety, and
31    welfare.
 
                            -17-     LRB093 05497 DRJ 17296 a
 1        (305 ILCS 5/5A-13 new)
 2        Sec. 5A-13.  Repeal of assessments and disbursements. The
 3    assessment imposed by Section 5A-2 of this  Article  and  the
 4    disbursements  authorized under subdivision (b)(1) of Section
 5    5A-8 of this Article are repealed on July 1, 2004.

 6        Section 99.  Effective date.  This Act takes effect  upon
 7    becoming law.".